Forum Archive Index - April 2000

["Chong Family" <jka.chong@xtra.co.nz>]

I have read serveral news about today's NASDAQ plunge and found many with mixed views, some say it is caused by the 'analysts' comment so that they can pick up stocks at 'garage sale prices' and some say it will be ongoing and would take heck of a long time to recover.I think it is time to separate between those whick has the qualities to 'survive' in the future. Here is my view on our tech/e-stock:

 

ADV: Consider this.  It does not even had much impact from the NASDAQ plunge, just a few percentage below beginning of March level. It has real strong earnings this year, but I still don't think it's PE growth can be sustained and it does not look attractive at this level . The Qixel issue, Idon't think it will list on the NASDAQ, maybe on the ASX,  not in the short term.

 

ITC: Well, it has the best management team of all, and a very promising future. Although profit this year would not be significant given that the revenue from Exo-net (tripled revenue) and Terabyte are not included until next quarter. It has rapid growth and already expanding into other international markets. I think the real value of ITC would show when they starting to exit their investments. Afterall, the fundermentals are still there, so I would not worry so much as a real correction would not devaluate its assets much.

 

SMR: Hmm.....I think it would be safer to invest in ADV, given that it's current exposure to US based investment purchased probably at inflated prices. I don't know if they would return at a profit this year, if not, I could see them go a lot lower. Luckily I sold recently at a small profit. This is because I especially don't like it's investment into the US venture capital. It's future plan is not clear and is not fundermentally sound.

 

FOR: A solid play. The future looks sound for Ihug, but they would face increase competition in the ISP market. With possible future float of Xtra and businesses such as the Saturn/ Telstra venture and i4free, Ihug will rely on expansion in Australia and other telephony services , maybe wireless to boost revenue. Probably wait till the Force assets are divested.

 

WDT: Don't know much about the second board, but the product should be a winner- from what I've heard.

 

RNS: good solid earning. Haven't heard much news on this one. Recent reports show computers sales are down.

 

SPE: Wel Technology aquisition will go on, maybe a short term play on this one

 

BDO: Don't even consider this, look how Amazon.com goes, don't think they will return a profit in the next few 'years'.

 

HGD: don't know much about E-cademy. Still regard this as a mining business

 

BCH: Too expensive for me, another share split should make it more attractive.

 

 

 

The 'stuff' above may be biased based on my holding.

Regards